The halt is the latest sign that the hard won phase-one trade deal between the world’s two biggest economies is in jeopardy. Photo: Reuters
SCMP/Bloomberg: China orders state traders to stop buying American farm goods, threatening phase one trade deal
* Bloomberg reported China paused purchases of some American farm goods including soybeans as Beijing evaluates the ongoing tensions with the US over Hong Kong
* State-owned traders Cofco and Sinograin were ordered to suspend purchases, according to sources, throwing a new spanner in the works of the phase one deal
Chinese government officials told major state-run agricultural companies to pause purchases of some American farm goods including soybeans as Beijing evaluates the ongoing escalation of tensions with the US over Hong Kong, according to people familiar with the situation.
State-owned traders Cofco and Sinograin were ordered to suspend purchases, according to one of the people, who asked not to be identified discussing a private matter. Chinese buyers have also cancelled an unspecified number of US pork orders, one of the people said. Private companies haven’t been told to halt imports, according to one of the people.
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Update #1: China orders firms to stop buying U.S. farm goods (Reuters)
Update #2: China tells state-firms to halt purchases of US soybeans, pork (Al Jazeera)
WNU Editor: I cannot say that I am surprised. When it comes to trade I have been always been skeptical on China's commitments. Expect new U.S. tariffs being imposed.
ReplyDeleteI believe Smithfield is a pork packer in this country purchased by Chinese some time ago. I wonder how this situation will impact them. I assume they have been selling to their countryment all this time, especially with the swine disease they experienced a few years back.